1.2 - The Triple Bottom Line (TBL)

Question 1

What is the Triple Bottom Line (TBL)?

Answer 1

The Triple Bottom Line (TBL) is a business concept that emphasizes measuring not only financial performance, but also its social and environmental impact.

Question 2

What are the three dimensions the TBL encourages businesses to follow?

Answer 2

• People (Social)
• Planet (Environmental)
• Profit (Financial)

Question 3

What does the ‘People (Social)’ dimension in the TBL concern?

Answer 3

The ‘People’ dimension in the TBL concerns how the people withing and outside the business are affected by said business.

Question 4

How can businesses work towards improving the ‘People’ dimension in the TBL?

Answer 4

Businesses can work towards improving the ‘People’ dimension in the TBL by:
- Providing safe working conditions
- Paying above minimum wages
- Treating employees and customers with respect and fairness
- Purchasing supplies from local and socially responsible supplies

Question 5

What does the ‘Planet (Environmental)’ dimension in the TBL concern?

Answer 5

The ‘Planet’ dimension in the TBL concerns how the business impacts the natural environment.

Question 6

How can businesses work towards improving the ‘Planet’ dimension in the TBL?

Answer 6

Businesses can work towards improving the ‘Planet’ dimension in the TBL by:
- Reducing the wastage of resources
- Provide protection to the natural environment
- Using renewable energy (eg. wind power, solar energy)
- Purchasing resources from eco-friendly suppliers

Question 7

What does the ‘Profit (Financial)’ dimension in the TBL concern?

Answer 7

The ‘Profit’ dimension concerns with profit and loss in the business.

Question 8

How can businesses work towards improving the ‘Profit’ dimension in the TBL?

Answer 8

Businesses can work towards improving the ‘Profit’ dimension in the TBL by implementing and practicing good cost management.

Question 9

Why is the Triple Bottom Line (TBL) and important guideline for businesses to follow?

Answer 9

The TBL is important, as it:
- Enhances business reputation and images
- Attracts and retains employees
- Make customers more loyal
- Improved profits
- Better PR